Well, the good news is that Diablo is finally all settled in and as spunky as I have ever seen a betta! He had me a bit worried for a while, I think he was experiencing culture shock ;)

The bad news is, I am ready to throw his tank out the window I added a piece of Mopani drift wood. Prior to it's addition to the tank, I soaked it for a week to leach the tannins out and boiled it twice for 2 hours to encourage the process and to help sterilize it. However, a few days after adding it, I noticed a slime/fuzz growing on it. Upon further research I found that many people experience this problem and that it will clear up on its own or I can scrub it off (I decided to wait it out and not disturb his home since he seemed to be taking it pretty hard that he was just transplanted to chilly, snowy Colorado from a warm tropical Thailand ;). However, this fuzz has gotten worse and is now on every surface of my tank. Today, I am planning on taking everything out and doing a deep clean unless someone suggests otherwise.

It is a 7.5 GAL tank, heated, fluorescent bulb lighting, had a filter until about 3 days ago. Even after I baffled it, it seemed to really stress Diablo out. I have been doing a 75% water change daily and try to remove as much as possible with my hands. Has anyone else had this problem? Picts below.

Ugh, this stuff is just THE WORST, it is ALL OVER one of my 10 gallons and popped up on about day 3, I think the driftwood has something to do with it since my tank has a bunch of driftwood in it that has this problem, while my other tank, which has no driftwood, does not.

It is not harmful to your betta, I actually think the slimey coatyness of it may actually help protect his fins more if anything, but it sure is ugly, and it smells awful.
Problem is, you can scrub it, clean it, whatever, but it will come back.
I gave up on trying to get mine out and am just going to let it run its course, the only thing I would suggest is keeping up with water changes to remove any of the bits that detach and float around as often as you can.. if you have a gravel vacc that's good. After awhile though it gets super stuck and you can't even vacc it off anymore (yes, i thought i had the cure, sucking it all off, but now that no longer works)

IMO just let it run its course, it should go away eventually, but i do understand your iussue with it, it's soooo nassstyyy lol

I had it with the one piece of bogwood I had in my 10G tank.I scrubbed it off when I did my weekly water change,and it finally went after a few weeks.
It has never appeared on bogwood in my other tanks or other pieces I put in my 10G,so I presume it just happens with some pieces.It never effected any of my fish though.....apart from when the fish grew arms and legs and ran around my house stealing all my spoons and VW camper stuff (I may of dreamt that,so ignore it ).

Thank you all for your replies!
@peachesxo: When I read your post, I let out a huge sigh of relief. I have started to worry that I was dealing with something entirely different that could harm my fish. I think you are right about it being a soft protection against sharp objects- in fact Diablo has been treating it like a fluffy bed to rest on!
@Tomsk- Good to hear you never noticed any adverse effects aside from the spoons and what not. Do you think I could blame Diablo/the white slime for my lost car keys? ;)
@Jackislost- I have tried that, however it is impossible to suck it all out since it is on every side of every leaf, ever nook and cranny, etc. It seems to all just come right back the next day just as thick! I do leave the light on most of the day for the last week. I had not thought of that- perhaps it is just feeding the bloom. The tank also receives indirect sunlight almost all day.
@littlebityfish- hope yours resolves itself too!!!

Well, what I have decided to do is a deep clean tonight with hot hot water- including substrate. I am going to scrub the wood then put it in my 2.5 quarantine tank with a mini heater and let it run its course in there. It will be easier to maintain if it is not in Diablo's larger tank with all the various plants, etc. When it starts to clear up, I will just set it back in there :) Thanks again for all your great input!